What Is a Non Executive Director Salary?

In the UK, a non executive director (NED) is not a salaried employee. Instead, they receive a fee for their services, typically structured as an annual retainer plus additional payments for committee work or extra meetings. The term “non executive director salary” is therefore a misnomer, but it is commonly used in job searches and pay comparisons. This article explains how NED compensation works, how it compares to typical UK earnings, and how you might convert a fee into an hourly or annual equivalent.

UK Earnings Benchmarks from ONS

To put NED fees in context, it helps to look at official UK earnings data. The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) for 2025 reports that median gross weekly earnings for full-time employees were £766.60 in April 2025, a 5.3% increase on the previous year. Median gross annual earnings for full-time employees stood at £39,039. These figures include employees in all occupations, from entry-level to senior management.

For comparison, the National Living Wage (NLW) for workers aged 21 and over was £12.21 per hour from April 2025. At a standard 37.5-hour week, that equates to roughly £23,810 per year. The NLW provides a floor, but NED fees are typically far above this level.

Typical NED Fees in the UK

NED compensation varies significantly by company size, sector, and the director’s responsibilities. According to a survey by Alvarez & Marsal covering FTSE All Share companies with fiscal years ending between April 2023 and March 2024, NED fees are set by the board and disclosed in annual reports. While the survey does not give a single average, industry practice suggests:

• FTSE 100 companies: Annual NED fees often range from £60,000 to over £100,000. Chairs of committees (e.g., audit, remuneration) may receive additional fees of £10,000–£25,000.
• FTSE 250 and smaller listed companies: Fees are lower, typically £30,000–£60,000.
• Unlisted or private companies: Fees can be as low as £10,000–£20,000 for smaller boards.

A separate report by WTW on FTSE 100 director remuneration (2026) focuses on executive directors, showing median CEO salary of £1.048 million and CFO salary of £664,000. NED fees are not included in that report, but they are generally much lower than executive pay.

Converting NED Fees to Hourly or Annual Salary

Because NEDs are not employees, there is no standard hours assumption. However, you can estimate an hourly rate if you know the expected time commitment. Many NED roles require 1–2 days per month (roughly 8–16 hours), plus preparation and committee meetings. Some larger companies expect 2–3 days per month.

Example calculation:

• Annual fee: £60,000
• Estimated hours per week: 10 (520 hours per year)
• Hourly rate: £60,000 ÷ 520 ≈ £115 per hour

If the commitment is only 5 hours per week, the hourly rate doubles to £230. This is far above the median hourly earnings for full-time employees (£19.67 per hour in April 2025, according to ONS).

To convert an hourly rate to an annual salary for a standard employee, the rule of thumb is: annual ≈ hourly × hours per week × 52. For a 37.5-hour week, that is hourly × 1,950. But NEDs do not follow this pattern, so any conversion should be treated as a rough guide.

London Weighting and Overtime

NED fees are typically not adjusted for London weighting, though some larger companies may offer higher fees for London-based roles. Overtime does not apply to NEDs because they are not hourly workers. If you are comparing a NED fee to a salaried job offer, remember that salaried employees may receive benefits such as pension contributions, holiday pay, and sick pay, which NEDs do not.

Using Our Tools

If you are considering a NED role and want to compare it with a salaried position, you can use our Hourly to Salary calculator to convert any hourly rate into annual, monthly, and weekly figures. For broader UK pay data, visit our salary data page, which includes ONS benchmarks and industry averages.

Caveats and Considerations

• Not a salary: NED compensation is a fee for services, not wages. It is subject to different tax and NI rules.
• Hours vary: The time commitment can change month to month, especially during crises or major transactions.
• No guaranteed income: Unlike a permanent salary, NED fees are typically reviewed annually and may not increase with inflation.
• Multiple roles: Many NEDs hold several directorships, so total income may come from multiple sources.

Always check the company’s annual report for the most recent fee disclosure and consult a tax adviser if you are unsure about your status.

Summary

The phrase “non executive director salary” is widely used but technically inaccurate. NEDs earn fees, not salaries, and those fees vary enormously. By understanding the typical ranges and how to convert them into hourly or annual equivalents, you can better compare a NED opportunity with a traditional job offer. Use official ONS data and our conversion tools to make informed decisions.